Constellation Brands, Inc. Class A (STZ)

In the past six months, Constellation Brands' stock has been impacted by events such as Citi initiating a negative catalyst watch due to potential lowered guidance for 2026. Q2 2026 earnings beat estimates, but the company reiterated lowered full-year guidance due to a challenging macroeconomic environment. The stock had dropped 17% in January and was down approximately 30% over the past year as of July 2025. A quarterly dividend of $1.02 per share was announced. The company has faced significant impairment losses, including a $2 billion loss on its investment in Canopy Growth and a $3 billion impairment loss to goodwill related to a wine reshuffling in 2024.

Constellation Brands' products experience demand seasonality. The first quarter typically sees higher marketing investment. Wine and spirits volume and sales are expected to increase in the second half of the year. Recent macroeconomic challenges have led to reduced social gatherings, which has dampened beer consumption occasions.

Constellation Brands, Inc. (STZ) is an international producer and marketer of beer, wine, and spirits within the defensive consumption sector. Its major products include Mexican imported beers like Corona Extra and Modelo Especial, and premium wine and spirits brands such as Robert Mondavi Winery and High West whiskey. The company has also introduced innovations like Corona Sunbrew and invested in non-alcoholic functional beverages.

Constellation Brands has operations in the U.S., Mexico, New Zealand, and Italy, with its products marketed in over 100 countries. The company has invested significantly in its Mexican production operations to support its import beer business, including breweries in Nava, Obregon, and Veracruz.

Constellation Brands has focused on strengthening its brand reputation by aligning with consumer-led premiumization trends. The company divested mainstream wine and spirits brands to concentrate on higher-end offerings. Its beer portfolio, particularly Modelo Especial and Corona, holds a dominant position in the U.S. high-end beer market. Corona Sunbrew has also quickly become the number one new beer brand in the U.S. The company is investing in digital capabilities and e-commerce distribution partnerships. However, the company has faced challenges, including regulatory uncertainties surrounding its investment in Canopy Growth, concerns about shifts in consumer preferences, and a general slowdown in the U.S. beer market.

Institutional investors and hedge funds hold a significant majority of Constellation Brands' stock, owning between 77.34% and 79.2% of the company. Major institutional owners include Vanguard Group Inc., Wellington Management Group LLP, Ameriprise Financial Inc., Norges Bank, and Berkshire Hathaway Inc. Other notable institutional investors have recently increased their holdings.